Why Are Retail Giant Target's Shares Soaring Today?
Portfolio Pulse from Shivani Kumaresan
Target Corp (NYSE:TGT) reported Q3 FY23 sales of $25.398 billion, surpassing estimates, with a 4.22% Y/Y decline. Comparable sales fell 4.9%, but gross margin expanded to 27.4% due to lower costs and favorable category mix. Operating income rose 28.8% to $1.3 billion. Adjusted EPS of $2.10 beat estimates of $1.48. Inventory was down 14% Y/Y, and dividends paid increased to $507 million. The company forecasts Q4 adjusted EPS of $1.90 - $2.60, with expected mid-single-digit sales decline. TGT shares surged 18.3% to $131.11.
November 15, 2023 | 3:21 pm
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Target's Q3 report showed better-than-expected financials with a sales beat, improved margins, and higher operating income. Adjusted EPS exceeded estimates, and the company has a strong outlook for Q4, despite a projected sales decline.
The positive earnings report, with higher-than-expected sales and EPS, along with an optimistic outlook for Q4, has led to a significant increase in Target's stock price. The 18.3% surge in share price reflects investor confidence in the company's performance and future prospects.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100